>> predictions, john, you're up. >> northeast is digging out and toro snow blowers digging in. up 25% by the springtime. >> brenda: all right. john layfield, what do you think of that? >> i'm a bull on john, bear on the stock. >> brenda: okay and your prediction, john layfield? >> apple hit it's 25 millionth download for itunes and i think probably had a lot to do with it. einhorn pressuring the company has a lot to do with the stock. >> brenda: and john. >> i'm usually with the einhorns the luster off tim cook, i'm a bear. >> brenda: jonas, your

prediction? >> a lot of fallout for the blackout at the super bowl. but destiny child and columbia neighbor. >> brenda: gary b, bull or bear. >> it's up a million percent at least wait for a pullback. >> brenda: your prediction. >> i like hasbro, they own monopoly, got rid of the awful iron. >> brenda: jonas, bull or bear. >> not for me. >> brenda: forget boardwalk and park place, where the real location is, coming up next cavuto on business and the rest of the business block. >> from the super bowl to the super bust. i'm charles payne in for neil cavuto. ravens may be champs, but the city looking like chumps. financial ruin and the highest taxes in the the state take a

toll and should the democrats in washington take heed because just this week, a group of them unveiled a 300 billion dollar tax hike they say will help pay down the debt. can america afford it? to ben stein and dagen mcdowell, along with adam lashinsky and gary k, more taxes? >> jumpy, mo yummy, more taxes course not. you hand it it to washington d.c. inefficient, ineffective and every program they've ever run is bankrupt and it's the worst possible thing to do and amazing to watch they said they'd only raise taxes on the so-called privileged few, but everybody got a payroll tax hike and unfortunately, we're hearing from reid, pelosi and unemployment still at 7.9% and we have yet to feel the effects of things to come. >> dagen, i've got to tell

you, one way they think you can fix the economy, taxes, taxes, taxes, it's nuts. >> we got that cbo report this past week, 7 trillion dollar in additional deficit and factor in what that 600 billion dollars in tax hikes that the democrats did already push through and how does that balance things? but the point about baltimore is interesting because that's where this nation could possibly be headed. you continue to raise taxes and you don't cut spending and you wind up on the brink of bankruptcy, exactly where that city is. >> you know, ben, you say we're all eventually going to have to pay higher taxes, but as the only item in your play book how to fix your economy it doesn't seem like it's ever going to work. >> i keep thinking if taxes are so terrible, why don't we just have no taxes at all. why don't we pay for-- >> 100% taxes. >> why don't we have no taxes at all and why don't you not interrupt me for once? >> i can't help it. >> why don't we have no taxes

at all and why don't we have some some balance in the budget. and for gosh sakes, we're grownup disciplined people and we're supposed to balance the budget not supposed to be like small children. >> okay, charlie. and balance is the word that we have a lot. and taxes is the only solution that we ever get. >> i know, and why i can't help interrupting ben on this one issue. (laughter) all you have to do is look, look at the places that impose these punitive taxes baltimore, new york, california, look at their economies, it's not working. >> that's a line. >> that's a lie that new york has a structural budget deficit. >> that's not-- >> and they lead those states, businesses are leaving those days. are you saying they're flocking to california to baltimore. >> actually they are, they are. >> the time were you in baltimore-- >> what i said mass nothing to do with taxes? >> really? businesses are moving out of

california because the weather is lottery. >> hold on, let's go-- adam, i do want to say, adam that charlie brought up a great point particularly in this case because this particular proposal is punitive and listen, we're going to tax all kinds of benefits from, you know, distribution of medicare benefitses, stock options benefits and we're going after something that people have earned and it is punitive. >> i'll handle it, he made a great point in your opinion, charles, you call it punitive. the technical expression is progressive. and i'm not making a value judgment. there's a difference between a progressive tax rate and an even tax rate, so a progressive tax rate, which we've had in the united states for decades, says that when -- that you tax people who are benefitting in a disproportionate way. you don't have to like it, but that's the approach. i do want to talk about baltimore for a second.

we-- it is not valid to compare a city with the united states government. baltimore is a declining city. the population is down by-- >> why the decline? >> it doesn't have to be. there are many reasons. the united states is not in that position. >> why a declining city. >> hold on. >> new york a declining city in the 1970's-- and hold on a second. >> i'll give you reasons, very high taxes, very high crime, a massive welfare state that could not be sustained. that was new york in the 1970's, that's baltimore now. and that's california now. that could be new york state. >> but charlie, the observation you make about california simply isn't true, i mean, it's everything hunky-dory, no, the businesses are flocking here and-- >> no, no, gary k, i want to bring-- i'm going to bring you back into this because the bottom line is, you can sort of try to-- you can nitpick here and

there, but i think that-- >> nitpick here and there. >> charlie is on to something. and-- >> picking here and there. >> you look at the highest tax rates in this country and look where the most misery is and welfare dependents are in this country and the places where the highest debt level is and have one thing in common and one solution, and taxes worked on and the city and states, boot way, illinois is in trouble, california is in trouble and city and states and municipalities and and one solution to tax people who are successful. forget about the disproporti disproportionality of it. if get up and go to work in the morning, i should make more this goes beyond balance, doesn't it? >> quite. we're arguing back ab forth, but there's a fact of life out there, called 16 trillion in debt headed towards the 20's

and i have news for you, that debt was not created by you and i, it was created by them in washington d.c. because they refused to balance their books for how many years and yet, they're putting it on our backs and all i'm saying. >> hold on one second, hold on one second. all i'm saying is the more.you take out of the economy and put over there where it's unefficient and ineffective. we know that for a fact, the worst is the potential of this economy will never ever be reached and it's as simple as that. >> and california's budget is not balanced. >> and it's like-- >> and we know, all of them are smoke and mirrors, but, dagen, this whole idea that taxes are the solution, i'm shocked that anybody still believes that. >> well, there are a lot of-- i mean, a lot of people who benefit from taxes in this country. and you've got half the country virtually half the country no federal net and no net federal income tax, but to your point, adam. i think you can compare to the

united states to baltimore, a city that's long been in decline although i do love baltimore, but this country, we're suffering through this period of economic malaise and enui and sitting around wondering why that is. how about the fact that as a percentage of our economy, gft spending is higher than it's been historically. we need to get it back below 20% and we're not and wondering why the economy is growing so slowly. it's going to be ten years out and we're going to be in worse shape and it's going to dawn on us, that that's the reason why, and we're living in a nation in decline. >> hold on one second. >> hey, i love you like mad, but the fastest we've had in the country is during world war ii when taxes were dramatically, fantastically higher than they are now. higher taxes are not automatically correlated with the-- >> i'm sorry, but-- >> guys, hold on one second, ben, i want to say something to that, that's brought up all the time. have you ever looked at the percentage of the population that was paying that high rate? it would be, if you adjusted for inflation, it'd be someone

making 3.6 million dollars now. it's sort of an farce to say we have high tax rates in the past and it worked. at what level, ben, do you personally say ouch. okay for the government to take 60, 70, 80, 90% of what you earn. >> wait a second during world war ii even wage earners were paying taxes 30% and taxes were much higher for everyone, so, i'd say ouch right now. i mean, when i pay my taxes, it's breath taking how much i pay. but i'm afraid they have to be even higher if we're going to balance the budget and baltimore has many, many other reasons why it's declining other than taxes. there's a very high crime city, but it does have the best crab cakes in the world. >> adam i'll go to you last. and besides the crab cakes, do you think a combination of crab cakes and taxes, in world war ii, the estate taxes, obamacare taxes and americans

are taxed to death and proves dagen's point. there's a malaise and we saw it in consumer confidence means, now what, taxes aren't going to do the trick. >> you know, we shout a lot, but in here, we actually are getting into real disagreements how to solve problems. at the beginning gary said every program they run shall meaning the government is bankrupt. not the f.d.a., not f.a.a., not interstate highway system. we need our government we need to figure how to make it work not to say let's do away with it. >> i keep hearing they need more money for the interstate highway. see this debt mounting, is that why the administration just got suing. tdd#: 1-800-345-2550 like no atm fees, worldwide. tdd#: 1-800-345-2550 and no nuisance fees. tdd#: 1-800-345-2550 plus deposit ches with mobile deposit. tdd#: 1-800-345-2550 and manage your cash and investments tdd#: 1-800-345-2550 with schwab's mobile app. tdd#: 1-800-345-2550 no wonder schwab bank has grown to over 70 billion in assets. tdd#: 1-800-345-2550 so if you're looking for a bank that's in your corner, tdd#: 1-800-345-2550

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>> live from america's news headquarters, i'm heather childers. first lady michelle obama is attending a fouuneral service

for a 15-year-old girl, gunned down by gang related, and she walked her mother to the open casket. she was killed a few days after performing at an event during president obama's inauguration. the manhunt for an ex-cop turned triple murder suspect intensifying at this hour, more than 100 police officers standing out in california's snowy san bernardino mountains, searching for chris dorner, a former police officer and navy veteran accused of killing a couple and am burbushing an officer on thursday. now back to cavuto. >> you mess with the bull you get the horns. the justice department going off credit rating agency s & p

accusing them misleading in the financial crisis. and the same agency downgradi downgrading us and sending the markets in a tailspin. and wondering why other agencies aren't charged. a little peculiar. >> and as someone who covers the financial crisis i have no sympathy for standard & poor's, these were some of the lucrative deals and complex housing bonds and vying for the bonds and they were involved in the deals and they did stupid things. and that said, i will tell you that every single ratings you see the same exact thing and basically inflated those ratings they could be put on the deal and if they go after standard & poors, they have to go after the hours and the only reason they're not. this is pay back time. >> pay back time for the downgrade, the u.s. debt. >> no. >> make the administration look bad. >> i don't buy it.

they're going to start with one, start with s & p and the case go goes-- moody's the justice department is probing moody's among other regulators and looking into-- they're going to see what they can extract from s & p and if they can win in court. >> i know for a fact there have been congressionalal hearings on this. moody's had e-mails we're' talking about, will rate-- >> and in order the same sort of stuff. >> that's what i just said, that's what i just said, that moody's is-- because they're not going to go after them all at the same time if they know-- >> and why moody's first? >> and ultimately though, can this just be a scare tactic, in other words, hey, don't ever think about downgrading america's debt again or... well, look, i hope not. i hope it's not just scare tactics and frankly, i couldn't be happier, i was yelling and screaming in '08, this was fought in plain sight and the conflict of interest

of rating something that you-- that the people pay you to rate is a joke. it's like if you were a father of a daughter in the miss america pageant, you are the judge so i'm glad somebody is getting in trouble and i think that moody's will probably be next and hopefully won't have to worry about this, what we're talking about here. >> here is the thing though, adam. everyone on this set. there's no sympathy for any of these guys, but the bottom line, it feels odd. the s & p, the one who actually downgraded america's debt. perhaps made the president look bad, perhaps an embarrassment, moody's major investor being warren buffett, they weren't involved, haven't been called out just yet. the smell test isn't great right now. >> well, with respect to the premise of the segment, i think it's silly to accuse the justice department of doing the treasury department's bidding. it just doesn't work that way. there's a longstanding tradition of going after number one, the market leader, and trying to set, to make an example.

>> the market leaders. >> hold on. >> that's the point that he's trying to make. >> and let-- finish the point, adam. >> trying to understand it. >> you make an example of somebody with deep pockets. i've said that earlier. we don't have to like it, but that's how litigators and regulators go about their business and by the way, it is punitive m in case. >> okay, ben, again, saying you make an example. it's pretty curious and no one feels sorry for any of these guys, they put america through hell. why the timing of it? why s & p and none of their competitors? >> wiell, i'm not a fan of eric holder, i know him personally a little bit, but not a fan of him as an attorney general. and it seems extremely farfetched that they would do anything like that, take revenge, and might add to your premise, the downgrade put the market into a tailspin. didn't put it into a tailspin

long. and by the way, s & p will have extremely powerful lawyers, a lot of defenses in these cases and one being that when they gave these things triple-a ratings they always said these are triple-a compared to other housing and credit interests of the same type. they didn't say compared with other interests altogether. so there are going to be a lot of defenses and a much more complex case it seems at this moment. >> at the end. day it's probably some form of a shakedown and money changing hands. thanks a lot. are you tired of working after hours? it happening and some people are worried that it could be headed in the wrong direction. the forbes gang is on the case. that's at the top of the hour. shut them up and they'll pay and one restaurant serving up hush money if the kids behave. if it creates a better experience for everyone, what's wrong with na. hey, our salads.

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>> do you remember an incident out of denny's in december of 1996. >> yeah, i guess. ah! ah! >> wa, wa, wa! you like, huh? you like that? wa! (laughter) . >> call it cash for quiet. the washington state restaurant is making waves

over a new perk for diners. handing out a discount to parents who get their kids to behave. dagen, i'm ready for you on this because i think this is a terrible idea, but you love it? >> coming from someone who's father would not take her out to eat in a public restaurant until i was old enough to actually drive the both of us, next to parents not bringing their screaming kids into the restaurants, i think this is genius, kudos to the restaurant. >> charlie, where are you on this? >> i grew up in an era where if you opened your mouth you got-- >> backhanded. >> you didn't get the backhand of nothing, clearly. [applause]. you know what, adam, i will say this, i would like to-- i would really like to put the rule in new york where the wall street guys are out. >> bragging about their money. >> and their cell phones. >> and adam, the comeback line

of them all, but how do you feel on this particular topic? >> parents need to be parents. >> this cuts very close to home. i think i'm the only one on the program with a child the age where this is relevant. if i had an economic incentive to get my daughter to behave herself in the restaurant i think i would be happy about it. i haven't seen it in any restaurants that we've been to. >> i guess that's it, ben, have we come that far that parents need an economic incentive to have their kids behave in public? >> you know, i don't care about that. i just think that adam should get for what he said, i've been doing the show a number of years and the best thing i've heard of yet. >> and there are people across the network that are growing with you. >> and gary k, what's your opinion on it. i think if the restaurant wants to do that terrific, if they want to give my kid something terrific. my kids behave themselves never got a thing, i'm okay with it. >> they do it in new york i'll

come in with kids that aren't mine and have them screaming all night long. i can make a lot of money on it. guys, fantastic. special thanks to charlie and dagen. (laughter) >> i love adam. and draw back your-- hit us with stocks and forget about chocolates for your valentine's, our gang has the sweethearts to fall in love with. >> ♪ cupid draw back your bow and let your arrow go ♪ a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. progress-oh! [ female announcer ] with 40 delicious progresso soups

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